Excellon Produces First Concentrate at Mallay

Excellon Resources Inc. announced the production of its first concentrate at its 100%-owned Mallay Silver-Lead-Zinc Mine in Peru during a pre-commissioning campaign that began July 2, 2026. Approximately 12,000 tonnes of material have been processed, yielding ~29,200 ounces of silver, ~319,000 pounds of lead, and ~456,000 pounds of zinc in concentrate form. Initial concentrate shipments are expected in August 2026, with payment anticipated in the same quarter.

The processing plant is operating at a controlled ~400 tonnes per day, below its nameplate capacity of 600 TPD, to allow for metallurgical optimization and recovery testing. Management has framed 2026 as a restart and ramp-up year, deliberately capping throughput to de-risk metallurgical performance.

Underground progress includes the dewatering of the 400 Ramp, with the water level drawn down ~45 metres from the 4090 Level. This work enables rehabilitation for future access to deeper mineralization. Three drill rigs are currently active for confirmation and exploration drilling targeting the Isguiz extension, Pierina gold target, and Mallay Deeps.

A cautionary note emphasizes that no preliminary economic assessment, pre-feasibility, or feasibility study has been completed, and the restart decision is not based on demonstrated economic viability of mineral reserves.

Excellon Resources Inc. (EXN) released details on August 5, 2026, confirming the execution of its staged restart plan previously outlined in a May 27, 2026 operational update. The company had targeted a June pre-commissioning campaign, with the slight delay to July/August considered immaterial given the explicit ramp-up guidance.

First concentrate production validates the metallurgical approach and confirms that stockpiled Isguiz and Footwall Zone material can be processed into marketable products. This development de-risks near-term operational execution but does not alter the fundamental timeline to full production. Management has set a deliberate 400 TPD operating rate, a move that reduces the risk of costly operational failures or concentrate penalties but also delays the realization of run-rate cash flows.

The news aligns with prior expectations and does not introduce new financial terms, strategic shifts, or unexpected upside. It serves as a procedural milestone confirming the company is on track to meet its stated restart objectives. Financial impact is incremental for 2026, as revenue from August shipments will offset some operating costs while the company remains in a capital-intensive ramp-up phase. Full economic viability remains unproven without a feasibility study.

Excellon Resources Inc. (TSXV: EXN) is a Canadian mining company focused on the restart and expansion of its Mallay Silver-Lead-Zinc Mine in the Cajatambo Province of Peru. The Mallay project is a past-producing mine with historical infrastructure valued at approximately US$115 million, including a 600 TPD processing plant. The company acquired the asset and initiated a phased restart in late 2025.

The restart strategy targets an initial 4–5 year mine life, with potential for 10+ years through near-mine extensions and district exploration. Run-rate guidance targets approximately 2 moz AgEq annually. Additional portfolio assets include the Tres Cerros Gold-Silver project in Peru, which is in the exploration phase; the Kilgore Gold Project in Idaho, which is in resource development; and the Silver City Project in Germany, held via a 75%-owned subsidiary, Saxony Silver Corp.

Management is led by CEO Shawn Howarth and COO Paul Keller, both of whom have extensive international mining and project execution experience.